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MNI BRIEF: Credit Availability Tighter For German Firms - Ifo


More German firms reported greater difficulty obtaining bank lending in December than in previous months, as lenders raise raise and show more reluctance extending loans, the Munich-based Ifo Institute reported Thursday.

According to the latest quarterly Ifo survey, almost 30% of companies saw lending constraints from banks in December, up from 24.3% in September. In the service sector, as many as 34.6% of firms reported tighter conditions, with 67.7% of the hospitality sector reporting concerns. Only 28% of manufacturers reported borrowing cocerns.

“The era of low interest rates is over for now. Many companies will have to get used to this and adjust how they structure their financing accordingly,” Klaus Wohlrabe, Head of Surveys at ifo, said.

MNI London Bureau | +44 203-865-3812 |
MNI London Bureau | +44 203-865-3812 |

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